IFO4
Loading...The systematic allocation of the cost of an intangible asset, or the periodic write-down of debt issuance costs, over the asset's useful life or the debt's term. Amortization is the intangible analogue of depreciation. The federation requires amortization of acquired intangibles to be reported separately from internally developed intangibles, with the useful life basis documented. Amortization of capitalised software development cost must be reconciled to the originating engineering capitalisation register per MEV-Annex:4.1. Goodwill is not amortised but is tested for impairment.
From Old French amortir, to deaden; the financial sense of writing down a balance over time entered English via medieval mortgage practice.
Federation members publish amortization by class of intangible asset and by debt issuance cost. Useful lives are disclosed at acquisition and re-disclosed on any change. Capitalised software cost amortization is reconciled to engineering registers under MEV-Annex:4.1.
@misc{ifo4_glossary_amortization,
title = {{Amortization}},
author = {{IFO4 Federation Editorial Board}},
howpublished = {{IFO4 Federation Glossary, slug \texttt{amortization}}},
year = {2026},
url = {https://ifo4.org/glossary/amortization},
note = {Category: Capital; key: Amortization}
}Federation members and accredited practitioners may challenge any entry under TGS-002:1.7. Filed challenges are routed to the editorial board, triaged into the revision register, and resolved in writing on the public docket. The slug remains stable through any revision.